Japan Low Grade Cu Scrap Supply to Get Tighter

Japanese supply of lower grade copper scrap is expected to get tighter for copper smelting. The demand increases in and after Sumitomo Metal Mining resumes operation at Toyo smelter in and after January while the scrap generation is still low level. Some of the scrap dealers try to build inventory preparing for potential tight supply.

The lower grade scrap generation decreased when building scrap activity gets slow after the major earthquake. The generation shows no sign to recover.

Sumitomo Metal Mining conducted around 2-month maintenance at the furnace of Toyo smelter through November 11. The firm notified scrap supplier for the smelter of lower scrap purchase volume in September-November.

The lower grade copper scrap supply gets tighter when other smelters increase the consumption and Toyo smelter resumes the normal operation. A scrap dealer said the firm secured certain volume of scrap preparing for coming tight supply condition in and after January.

A scrap dealer said Toyo smelter keeps around half of scrap purchase compared with normal level in December. The dealer said the smelter failed to indicate scrap purchase volume in January. The market interests see Toyo smelter’s normal operation could be delayed from original schedule.